Section 141: Privilege

141. Privilege (1) The Government shall have, in respect of any income tax due, and so long as the income tax is not paid in full, a privilege on all immovable properties belonging to the person by whom the income tax is payable. (2) Where the Director-General thinks it necessary for securing the recovery of any income tax due to inscribe the privilege provided for under subsection (1), he shall deposit with the Conservator of Mortgages 2 identical memoranda in the form specified in Part II of the Eighth Schedule and shall forthwith notify the person by whom the income tax is payable of the deposit of the memoranda. (3) The Conservator of Mortgages shall, upon deposit of the memoranda, inscribe the privilege generally on all immovable properties belonging, or which may subsequently belong, to the person by whom the income tax is payable, and shall return one of the memoranda to the Director-General with a statement written or stamped on it to the effect that the privilege has been duly inscribed. (4) Where a privilege is inscribed under this section, it shall take effect from the date of the inscription. (5) (a) Where any income tax in respect of which an inscription has been taken under this section is paid in full or the tax liability is discharged, the Director-General shall forthwith send to the Conservator of Mortgages a request in the form specified in Part III of the Eighth Schedule to erase the inscription. (b) The Director-General may send a request to the Conservator of Mortgages to erase the inscription in respect of any property belonging to the person by whom income tax is payable where the Director-General is satisfied that the value of the other properties of the person is sufficient to secure payment of the amount which has remained unpaid. [Issue 7] I5 – 90 Revised Laws of Mauritius (6) (a) The inscription of privilege under this section shall be erased by the Conservator of Mortgages at the request of the Director-General. (b) Where an inscription of privilege is erased pursuant to paragraph (a), the Director-General shall, within 5 working days of the date of the notification of the erasure by the Conservator of Mortgages, give written notice of that fact to the person who owed the income tax. (7) Any inscription or erasure which is required to be taken or made under this section shall be free from stamp duty under the Stamp Duty Act, or registration dues leviable under the Registration Duty Act, or any other costs. [S. 141 amended by s. 27 (10) (j) of Act 33 of 2004 w.e.f. 1 July 2006; s. 4 (e) of Act 4 of 2006 w.e.f. 2 October 2004; s. 24 (zl) of Act 9 of 2015 w.e.f. 14 May 2015.]